Source · Select Committees · Defence Committee
Recommendation 6
6
Paragraph: 38
We note that the Department’s recent experience of upgrading older vehicles with new weapons and...
Conclusion
We note that the Department’s recent experience of upgrading older vehicles with new weapons and turrets has been difficult, resulting in additional costs and delays 54 Obsolescent and outgunned: the British Army’s armoured vehicle capability in delivering the required capability. The Challenger 2 LEP calls for the integration of a new digitised turret and main gun, along with other upgrades, within an existing hull. When making the decision on whether to proceed with the programme, the Department must ensure that it has reduced such risks as far as possible and fully weighed the options between upgrade and an off-the-shelf replacement. The Department should also provide us with a timetable for the programme and explain what alternatives have been considered. We also believe that the Department should examine the possibility of fitting Challenger with an automatic loader.
Paragraph Reference:
38
Government Response
Acknowledged
HM Government
Acknowledged
CR2 Life Extension Project (LEP) considered a range of comparative off-the shelf alternatives as part of its recent Full Business Case submission. The underpinning logic on the grounds of affordability and meeting our requirements were fully tested by both the Department’s internal scrutiny and assurance and that of HMT. This showed that CR2 LEP offers a better value for money solution than the German LEOPARD 2 or US M1 ABRAMS, while supporting UK prosperity and the growth of high-quality engineering jobs around the UK. Both alternative platforms are older than CR22 and whilst they have both been iteratively upgraded, they still remain less capable than CR2 LEP will be on delivery. The costs 2 Leopard 2 is over 60 years old. associated with any alternative platform must also include replacements for the Army’s armoured repair and recovery (CRARRV), armoured engineering (TITAN, TROJAN) and Driver Training Tanks. The full cost of integrating a new platform adds approximately 40% to the Control Total,3 making the procurement of these alternatives unaffordable. Both internal scrutiny by the MOD4 and more widely by the Major Projects Review Group5 both agreed and confirmed that the current strategy is both affordable and delivers better value for money. In addition, CR2 LEP will be manufactured in the UK, centred on factories in Telford. At least 60% of the RBSL contract will be undertaken with the UK supply base, including the devolved nations, generating and sustaining up to 500 jobs in the West Midlands, Glasgow, Newcastle upon Tyne and the Isle of Wight; supporting the UK prosperity agenda and economy. The option to fit Challenger with an auto-loader was also considered and dismissed early in the competitive assessment phase on capability and technical feasibility grounds and it is not believed it would deliver any substantial benefit. The Key Performance Milestones for CR2 LEP are as follows: KPM Event Date 1 Preliminary Design Review 30-Jan-20 2 FBC Submitted to IAC 09-Dec-20 3 Interim Design Review 1 04-Aug-21 4 Critical Design Review (CDR) 20-Oct-22 5 Achieve Technology Readiness Level (TRL)7 for new Modular 08-Mar-23 Armour (nMA) 6 Ready for Trials 03-May-24 7 Ready for Manufacturing 25-Jul-25 8 Logistic Support Date 30-Jun-27 9 Ready for Training 18-Jun-27 10 Initial Operating Capability (IOC) 30-Nov-27 11 Full Operating Capability (FOC) 22-Nov-30 12 Programme Closure 12-May-31